At Heritage, we believe that education is an important part of the estate planning process. On this blog we will be sharing some information, articles, and opinions that you may find helpful along your way.

As the article notes, the same survey found that 42% of Americans have not even saved $10,000 for their retirements. Instead of saving and investing money, Americans may be relying on Social Security and the possibility of working part-time during their retirement years.

Both are problematic.

While many seniors can and do work part-time after they retire from their regular employment, the option to do so is not available for everyone. Every year approximately half of the people who retire do so earlier than they had anticipated due to their failing health or the health of a spouse. This suggests that many of the people who are planning to work part-time may not be able to do so.

Retirees may also need to compete with younger workers for the part-time employment. Relying on Social Security is also problematic as it is not meant to be a full pension system. Social Security offers benefits that are less than needed to provide as a cushion against elder poverty.

To avoid an unrealistic look at retirement in the future, it might be helpful to consult with an elder law or estate planning attorney. You can learn more about retirement planning at:

07/24/2016

If a family includes special needs members estate planning options can help assure care is provided.

When parents with special needs children pass away a carefully prepared estate plan could provide for the needs of the child and avoid the exclusion of government benefits.

This requires an estate plan that provides for the child's monetary needs in a way that does not disqualify the child from receiving government benefits. It also often requires creating an estate plan that provides those funds in a way that is fair to other children.

Supplemental Needs Trust – These trusts allow parents to leave assets for the care of a child with special needs, but leave those assets under the control of a trusted third-party who can make sure the assets are used appropriately and invested wisely. They also help prevent disqualification from receiving government benefits, which is often the result if a child with special needs is left a large inheritance in one lump-sum.

Life Insurance – To fund a trust for a child with special needs, parents can take out life insurance policies and make the trust the beneficiaries of the policies. This allows the parents to divide their assets between all of their children equally while providing the extra funds for the child with special needs in a way that other children will not view as unfair.

An estate planning attorney could offer guidance in the options that work best for all family members. Heritage Elder Law can help. Visit our website to learn more.

07/17/2016

Study reveals women will have more years of life than men but tough health issues loom.

Because the expected norm is that the wife will live longer than the husband, estate planning will generally focus on ensuring that the husband's estate is properly designed to be sure the wife will have the necessary assets to support herself independently during the remaining active years of her life.

Over the last few decades the average life expectancy of both men and women has increased. Male life expectancy has increased more than female life expectancy. In fact, men have caught up with women in the number of years they can expect to live active, independent lives.

Correspondingly, women who live longer than their male counterparts have an increased rate of disability that limits their activity and ability to live independently.

This study helps confirm the notion that medical science has achieved great strides in prolonging life, but preventing the disabling diseases and conditions that afflict the elderly has lagged behind.

If these trends continue, married couples may be wise to contact an estate planning attorney to reconsider options.

Heritage Elder Law & Estate Planning, LLC focuses on helping families prepare for costs associated with Long Term Care. Are you preparing for the future? or do you already have a loved one receiving care? We can help - www.HeritageElderLaw.com

07/10/2016

Spouses may find it beneficial to use a postnuptial agreement to detail how property is divided.

Married couples can enter into postnuptial agreements that dictate how assets are divided up should a divorce occur or one of the spouses passes away.

The Wall Street Journal reports that the use of postnuptial agreements is increasing in "Why Postnuptial Agreements Are on the Rise." The article says that the most common reason for the agreements is to punish a wayward spouse as a condition of continuing the marriage. However, there is another reason couples might consider a postnuptial agreement.

They can be very useful in estate planning.

Every state has a law that gives a widow or widower the option of claiming a certain percentage of a deceased spouse's estate regardless what the estate plan says. This "election" is known as a spousal elective share. These laws are necessary to ensure that a spouse is not left without means of support.

However, in some cases they make estate planning more difficult, especially when both the husband and wife are independently wealthy or if one or both of them have children from a previous relationship.

Postnuptial agreements can be used in those situations to get around the spousal elective share. For example, they can be used to ensure that a family business goes to the owner's children instead of going to a spouse who could turn around and bequeath it to stepchildren or children from a future relationship.

Postnuptial agreements are not allowed in every state and many states that do allow them have strict rules to limit them.

An attorney can advise you on the laws of your state. However, this is a topic that is on the minds of many couples. The attorney's at Heritage Elder Law & Estate Planning, LLC. can help work through the possibilities in an estate plan. Visit our website to learn more about our FREE workshops.

07/03/2016

Financial decision by Harper Lee's estate may turn out to be quite costly.

People often find they never forget discovering Harper Lee's anti-segregation novel To Kill a Mockingbird or the high school teacher who assigned it as required reading. However, as of April 25 that paperback version generally used in high school will no longer be available, as the Tampa Bay Times reports in "Harper Lee's estate wants readers to pay more for 'Mockingbird'."

Lee's estate has informed the publisher of the paperback edition of the novel that it will no longer have license to print the book. Other, more expensive versions of the book will still be available.

This news comes shortly after a judge controversially agreed to seal Lee's will from the public so the public does not know who the author's heirs are and who is behind the decision to put an end to the paperback version of the book.

Lee's estate is not necessarily in the wrong.

It does have a duty to properly manage the author's assets for any heirs or beneficiaries. Selling To Kill a Mockingbird for a few dollars more could potentially lead to more money for those heirs or beneficiaries.

However, this decision could also backfire as schools often face financial challenges and look for ways to reduce the budget. Perhaps a less expensive book will fill the bill.